Supply of rice, paddy…
AGRICULTURE Minister Robert Persaud said, Wednesday, that Guyana’s ability to tap into the Venezuelan market is a deserved reward for the investments made to advance the rice industry.
He was referring to the second deal Guyana clinched to supply Venezuela with 50,000 tonnes of paddy and 20,000 tonnes of white rice priced at US$38M. According to him the payment represents prices that are between 25 and 30 per cent higher than on the international market for paddy and 75 per cent more for white rice.
“This is the best price compared to all other markets,” Mr. Persaud said, in an invited comment.
He pointed out that, with the Venezuelan market secured, paddy fetches a price of US$420 per tonne and white rice is earning US$700 per tonne.
In other markets, the prices are under US$400 per tonne for paddy and US$500 per tone for white rice, Persaud informed.
He said, another plus, is that, with Venezuela purchasing, the element of competition is promoted.
Persaud said the difficulty with waiting time at the ports in Venezuela, a problem which cost the current Administration significant sums, is being addressed through consultations.
“President Bharrat Jagdeo, when he visited Venezuela, during bilateral discussions, raised the issues of easing the port congestion. We continue to engage our counterparts for a better arrangement,” the Minister assured.
He said this latest contract is a relatively new one and there is an understanding, on both sides, about the challenges that persist.
Persaud said, in recognition of this, there will be changes in the arrangements to supply and service the agreement between Guyana and Venezuela.
“We are looking to employ someone in Caracas to work out of the (Guyana) Embassy, instead of having someone from here fly to Venezuela. We are looking at the long haul on this one,” he said, noting that, from all indications, Venezuela is in this for the long term.
“Our historical issues, including the border issue, are no reason why our people cannot work together for the good of Guyana and the good of Venezuela,” Persaud said.

COMPROMISE
He gave the assurance that this new pact with Venezuela will not compromise the supply of traditional markets, which include Jamaica.
Persaud said 44,000 tonnes of paddy have already been delivered to Jamaica, satisfying a significant part of an order for over 50,000 tonnes.
He disclosed that other markets in Central and South America, as well as within the Caribbean Community (CARICOM) are being looked at.
“Our economic development depends on us being able to penetrate continental markets,” Persaud explained.
He said, rather than remaining focused on CARICOM, Guyana has to look elsewhere and develop linkages which can, in turn, benefit the regional grouping.
“It is a win-win for everyone,” Persaud said.
The supply of export paddy is by farmers in Essequibo, who formed themselves into a group and individual farmers from East and West Berbice in Regions Five (Mahaica/Berbice) and Six (East Berbice/Corentyne) and there are less middle men, which means more disposable income for the producers, Persaud noted.
He said the Government and Guyana Rice Development Board (GRDB) are facilitators in the process and those interested in supplying paddy for it made their interest known to the latter agency, which then ensured equitable allocation to fill the required quota.
Persaud recalled that, for the first agreement with Venezuela, the interest shown was not as encouraging but, presently, it has increased significantly.
He said the intention is to improve the livelihoods of farmers and still allow the millers to make a tidy profit.
However, Persaud said the benefits must reach the level of the farmers and those acting in a selfish manner will not become beneficiaries.
He said the agreement with the suppliers has stipulations “to make sure that there is no hogging, so to speak, of the profits, but that everyone benefits from the Guyana/Venezuela deal.”
Persaud maintained that the rice industry is a 100 per cent free market.
Earlier this week, 5,100 tonnes of paddy was shipped to Venezuela, the first consignment towards fulfilling what is the requirement in this second Guyana/Venezuela rice deal and Persaud said this country needs to continue diversifying and expanding its markets.
“This agreement is very important for the forward movement of the industry. We are looking to increase the supply, we are looking for a greater share of the supply of white rice to Venezuela,” he stated.